Accounting > QUESTIONS & ANSWERS > ACFAR IFA TOPIC 10 & 11 TRUE OR FALSE QUESTIONS WITH CORRECT ANSWERS (All)

ACFAR IFA TOPIC 10 & 11 TRUE OR FALSE QUESTIONS WITH CORRECT ANSWERS

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A partnership is a legal entity separate and apart from its owners. Correct Answer T The basis of valuation for non-cash investments should be fair market value always. Correct Answer F A partne... rship should always be constituted in writing. Correct Answer F Mutual agency means that each partner has the right to bind the partnership to contracts. Correct Answer F As long as the action is within the scope of the partnership, any partner can bind the partnership. Correct Answer T The manner in which profits are to be shared should be specified in the articles of partnership. Correct Answer T A partnership cannot be established for religious purposes. Correct Answer T A partnership must always have at least two owners. Correct Answer T A partnership with a capital of less than P3,000 is valid even if it is unregistered with the Securities and Exchange Commission. Correct Answer F A de jure partnership is one which has complied with all the legal requirements for its establishment. Correct Answer T Bankruptcy of a partner will dissolve the partnership. Correct Answer F There can never be a partnership without contribution of money, property or industry to a common fund Correct Answer T All partnerships are subject to tax at the rate of 30% of taxable income. Correct Answer F A partnership may be established for charity Correct Answer F A limited partnership must have at least one general partner. Correct Answer T In general partnership, each partner's liability for losses is limited to his investment in the firm. Correct Answer F [Show More]

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